LOS ANGELES - B. Riley Financial, Inc. (NASDAQ: RILY) reported a net loss for the first quarter of 2024, with earnings per share (EPS) at -$1.71 and revenue falling to $343 million compared to $432 million in the first quarter of the previous year. The financial services firm's performance was primarily affected by non-cash, unrealized investment losses, which drove the net loss available to common shareholders to $51 million.
The company's operating revenues slightly decreased to $379 million from $389 million YoY, while operating adjusted EBITDA saw a significant drop from $88 million in the first quarter of 2023 to $66 million in the same period of 2024. This decline in profitability and revenue has resulted in a negative market response, with B. Riley's stock price falling by 3.6% following the earnings release.
Bryant Riley, Chairman and Co-Chief Executive Officer, acknowledged the impact of unusual events on the quarter's results, citing $30 million of unrealized non-cash investment losses and additional costs related to the company's internal review and subsequent independent investigation. Despite these challenges, Riley highlighted the stable performance of the company's core businesses, including B. Riley Securities, Wealth Management, and Financial Consulting, with Advisory Services reporting a record first quarter.
Tom Kelleher, Co-Chief Executive Officer, also noted the strong Q1 results from B. Riley Advisory Services, driven by increased demand for appraisals and bankruptcy restructuring, litigation consulting, and real estate services. Although the Capital Markets segment revenues declined due to unrealized investment loss, the segment's operating revenues increased due to a steady dealmaking environment.
The company retired $115 million of 6.75% 2024 Senior Notes and repaid $57 million of bank debt facilities and notes payable. It also declared a quarterly dividend of $0.50 per common share, reflecting confidence in the firm's operating performance.
Looking ahead, B. Riley's management remains focused on running the business in the best interest of its stockholders, addressing the needs of its clients, partners, and employees. The strategic review process for the Great American Group retail liquidation and appraisal businesses is making progress, with management expressing satisfaction with the interest seen to date.
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